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If "The Economist" Is Right About Autos, I'm Getting Rich

This Fool has made a three-pronged bet on a stronger auto industry.

As bottom-up investors, Jeremy Phillips and Austin Smith usually buy stocks directly, but in today's video, they talk about macro analysis as well.

In particular, Austin tells us about a report from The Economist about the auto sector, which says that in 2013, China and the U.S. will account for 60% of all car purchases. Sales are forecast to increase 7% in the U.S. and 8% in China. He owns Hyundai, Ford, and General Motors, which he notes are all trading at deeply depressed valuations even as their industry gets stronger.

Austin loves the tailwinds that support his investment thesis on these companies -- namely, that the average American auto is 11 years old, creating pent-up demand, and also that these companies are very cheap. Check out the video to hear more of his thoughts on the industry and these companies.